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GLOSSARY OF KEY TERMS DISCUSSED IN
GLOSSARY OF KEY TERMS DISCUSSED IN

... Investments the Council usually enters into are fixed term investments i.e. there is a start and end date and the investment cannot be broken (and the investment returned). With a certificate of deposit the investment can be sold (traded) at any point before the end date. This gives added flexibilit ...
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... • Venture Capital and Private Equity • Venture capital • Investment to finance new firm ...
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... do corporations sell bonds?  To raise capital ...
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OFFICER`S CERTIFICATE TO: British Columbia Securities
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... Affairs and Secretary of the Corporation and PNI, in such capacity and not in her personal capacity, certifies for and on behalf of the Corporation and PNI, that: ...
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... • Cash equivalents (investments with original maturities of three months or less). Cash equivalents are short-term, highly liquid non non-security security investments that have an original maturity of 3 months or less at the time of purchase, are readily convertible to known amounts of cash, and ar ...
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... demand, which is bidding up prices. Not only is the domestic desire for munis running hot, the presence of negative interest rates in developed Europe and Asia has escalated the amount of money flowing in from overseas banks, pension funds and other institutions. The not-so-good news? Bond issuance ...
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Securitization

Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations (or other non-debt assets which generate receivables) and selling their related cash flows to third party investors as securities, which may be described as bonds, pass-through securities, or collateralized debt obligations (CDOs). Investors are repaid from the principal and interest cash flows collected from the underlying debt and redistributed through the capital structure of the new financing. Securities backed by mortgage receivables are called mortgage-backed securities (MBS), while those backed by other types of receivables are asset-backed securities (ABS).Critics have suggested that the complexity inherent in securitization can limit investors' ability to monitor risk, and that competitive securitization markets with multiple securitizers may be particularly prone to sharp declines in underwriting standards. Private, competitive mortgage securitization is believed to have played an important role in the U.S. subprime mortgage crisis.In addition, off-balance sheet treatment for securitizations coupled with guarantees from the issuer can hide the extent of leverage of the securitizing firm, thereby facilitating risky capital structures and leading to an under-pricing of credit risk. Off-balance sheet securitizations are believed to have played a large role in the high leverage level of U.S. financial institutions before the financial crisis, and the need for bailouts.The granularity of pools of securitized assets can mitigate the credit risk of individual borrowers. Unlike general corporate debt, the credit quality of securitized debt is non-stationary due to changes in volatility that are time- and structure-dependent. If the transaction is properly structured and the pool performs as expected, the credit risk of all tranches of structured debt improves; if improperly structured, the affected tranches may experience dramatic credit deterioration and loss.Securitization has evolved from its beginnings in the late 18th century to an estimated outstanding of $10.24 trillion in the United States and $2.25 trillion in Europe as of the 2nd quarter of 2008. In 2007, ABS issuance amounted to $3.455 trillion in the US and $652 billion in Europe. WBS (Whole Business Securitization) arrangements first appeared in the United Kingdom in the 1990s, and became common in various Commonwealth legal systems where senior creditors of an insolvent business effectively gain the right to control the company.
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